A novel way to attack a budget deficit.

[dude1394]

How interesting...If it works we might finally find a way to reign in politicians. If they added some sort of scale that would kick them out if so many years of budget deficits occurred you would really have something. Incentives do work.

They would have to add perks into that as well for some of the barons and baronesses.

http://www.cato-at-liberty.org/a-nov...under-control/
A Novel Way of Keeping Fiscal Deficits Under Control? Posted by Marian L. Tupy
Having inherited an 8 percent budget deficit from the previous socialist government, the new conservative-liberal government of Slovakia has come up with a novel way of keeping budget deficits under control in the future. Starting in 2011, salaries of government ministers will rise and fall depending on the evolution of the fiscus. Thus, a budget deficit of 5 percent will translate to a 10 percent decrease in salaries, while an (unlikely) budget surplus of 5 percent will translate into a 10 percent rise in salaries, etc. It will be interesting to see if this new measure will truly result in a more responsible fiscal policy in the years to come.
Incidentally, had the United States adopted a similar measure, President Obama’s reported salary of $400,000 in 2009 would have fallen to $320,000 in 2010.

[92bDad]

You mean politicians would now get paid based on actual measurable performance!!!

On the surface, I am in serious favor of such a concept.

This would keep both Republicans and Democrats in some type of accountability, as both are guilty of spending other peoples money for special "Ear Mark" interest...all in an effort to stay in power by spending money for votes.

It will be interesting to see how this experiment translates in the coming years for Slovakia. Kinda wonder if a similar concept can be tested within some local city, county or state entities?

[dude1394]

Originally Posted by 92bDad

You mean politicians would now get paid based on actual measurable performance!!!

On the surface, I am in serious favor of such a concept.

This would keep both Republicans and Democrats in some type of accountability, as both are guilty of spending other peoples money for special "Ear Mark" interest...all in an effort to stay in power by spending money for votes.

It will be interesting to see how this experiment translates in the coming years for Slovakia. Kinda wonder if a similar concept can be tested within some local city, county or state entities?

I don't know...Local, city, state types want to be politicians as much for the connections and deals they can swing later as they do the salary. In general I sort of feel the same way about this scenario, but I would like to see it happen.

I would also like to see our state governments quit trying to blackmail the electorate when it comes time to do budget cuts with a "we must lay off x number of workers" instead of a...we will cut the pay by x%. That way the blackmail of classless students and fires burning out of control would not be effective.

[mcsluggo]

I feel about the same way about this as i do about "performance metrics" for bank managers. It looks good at first glance, and then... not so much.

for banks, it led them to take many more ones sided risks, and to increase the volatility of their portfolios, because metrics are always going to be one-sided, and short run in nature. Basically all that the bank (and corporate in general) options did was grossly inflate executive pay packages and did so in ways that harmed the long-run health of the companies.

for govt employees.... 99.999% have absolutely zero control over the metric in question (overall government fiscal balance),

and the few that do basically have salaries that have very little to do with their positions already. ---- In the US.... say, the OMB director (and top deputies), the president (and deputies), sec of Treas (deputies), and congress and senators ----- all of these positions pay about $150 - 200k ---- which is peanuts compared to what these dudes would make in any other comprable private sector job.